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Association of Consultants to Nonprofits blog postsAssociation of Consultants to NonprofitsWild Apricot - membership management software and moreenThu, 21 Mar 2019 20:57:06 GMTThu, 21 Mar 2019 20:57:06 GMTWed, 15 Feb 2017 21:46:39 GMT(Literally) Changing the Conversation: The One Thing Nonprofits and Consultants Can Both Change Today for More Effective Engagements<p><strong><img src="https://www.acnconsult.org/resources/Pictures/catherine_siebel3.jpg" alt="" title="" style="margin: 0px 0px 0px 10px;" width="150" height="150" border="0" align="right">By: &nbsp;Catherine Siebel, Impact Assessment for<br>
Foundations and Nonprofits</strong><br>
I have been intending to write this post for several months. But today was the day that I put my resolve to the sticking place (forgive the messy metaphor) and decided to sit down to my computer. Today, you see, was the day that I received the following e-mail:<br></p>
<p><em>Hi Catherine,</em></p>
<p><em>Our budget is tighter than we thought and there doesn’t seem to be extra room for us to have you to work on our program assessment. Thanks very much for your time and your proposal.</em></p>
<p>This e-mail followed two phone calls about the scope of the project, an hour of my time going through the organization’s materials in order to give them a fair estimate of what I thought the work would take (For the record: the price I quoted was $3,500), and half an hour putting together a brief proposal. This is hardly a novel occurrence – every consultant I know has experienced some variation of this.</p>
<p>I see this situation – and countless others just like it – as a consequence of three factors that anyone in the sector who has either engaged a consultant or provided consulting services recognizes:</p>
<ul>
<li>
<p>Looking for a Deal. Every nonprofit consultant I speak with has several versions of this story: being contacted by a nonprofit about our pro bono services; being asked to shave a few thousand dollars off of a project estimate for budgetary purposes; having a client engage in the practice of “scope/creep”, in which the work requests creep beyond the boundaries of the contracted services; or any number of other scenarios. No matter what you call it, the result is the same: devaluing the work of the people who have the experience and knowledge to strengthen your organization</p>
</li>
</ul>
<ul>
<li>
<p>Misunderstanding Consultant Fees. In my experience, that math that clients tend to do regarding my fees is to compare it to staff salaries (i.e., “This consultant is charging $20,000, which is half what Mary makes!”). This type of calculation leaves out a number of factors that independent contractors must take into account. Remember for example, that this $20,000 must account for compensating ourselves as employees (both sides of income tax; time of for sick days, vacation, etc.; health care and retirement benefits) as well as the cost of running a business (purchasing our own laptop and printer; marketing our services by maintaining a website, engaging in social media, and attending networking events; providing printed materials to our clients). And so – for that $3,500 that I’m charging, about $700 of that is realistically going into my&nbsp;paycheck.</p>
</li>
</ul>
<ul>
<li>
<p>Playing Chicken. I suspect that anyone who is reading this has been engaged in at least one game of chicken between nonprofits and consultants: the nonprofits don’t want to disclose their budget for a given project fear that the consultant’s fees will magically meet that exact number, and consultants don’t want to disclose their fees until they understand the scope of the project, the nature of the organization, and who their competition is. And so begins a time-consuming and arduous process between the two parties where they attempt to feel one another out. Hardly a free market scenario.</p>
</li>
</ul>
<p>Here's what both nonprofits and consultants can do to avoid these problems:<br></p>
<p><strong>Be Upfront and Transparent (That’s it).&nbsp;</strong></p>
<p>How could the scenario that began this post have been avoided? Both the prospective client and I should have told it like it is. Imagine a world in which the initial contact that the client made read something along the lines of:</p>
<p><em>“Hi Catherine, We are looking for an evaluator to do (x). The budget we’re looking at is about $1,500. Please let me know about your availability to discuss this project.”</em></p>
<p>And I could have responded:</p>
<p>“<em>Hello, Thank you for your inquiry. My projects typically begin in the $3,000-$5,000 range; my fee includes the work product as well as all meetings, correspondence and local transportation. Please let me know if you are interested in continuing the conversation.”</em></p>
<p>Instead, we wasted precious time (and therefore, money) engaged in a ineffective dance that ended in frustration (certainly mine, but also probably the nonprofit’s) - and got none of the work done.</p>
<p>I implore you to think about this. And then change the conversation – quite literally. Save everyone the time, money and frustration.</p>
<p><br></p>https://acn.wildapricot.org/get-support/4611267
https://acn.wildapricot.org/get-support/4611267Tue, 13 Dec 2016 17:07:55 GMTWhat Makes A Good RFP – A Consultant’s Viewpoint<p><img src="https://www.acnconsult.org/resources/Pictures/ACN-McCann-photo.jpg" alt="" title="" border="0" width="150" height="181" align="right" style="margin: 0px 0px 0px 10px;"><span><strong>By: Debbie McCann, W4Sight LLC</strong></span><br>
One of the services that ACN offers to nonprofits is distributing notifications of Requests for Proposals (RFPs) to its members. &nbsp;Through ACN’s process of distributing RFPs, W4Sight has both successfully secured new business and gained some insight about the RFP process. Last week’s post focused on advice for consultants on going through the RFP process. Today, we’re addressing some advice to nonprofit organizations, from a consultant’s perspective.</p>
<p><strong>Why submit an RFP?</strong></p>
<p>An RFP describes a <em>specific</em> project for which an organization would like to hire a consultant, and provides a set of instructions for preparing a bid. Organizations use RFPs – rather than simply interviewing several consultants gathered from recommendations of friends or colleagues – to provide additional formality to the process and to avoid favoritism or lack of competition. &nbsp;Some funders, particularly public funders, require a competitive process designed to foster a broad range of choices for the agency. &nbsp;Organizations compare RFP responses on price, qualifications, and the proposed approach to the project. &nbsp;Most funders do not require an organization to select the lowest bidder when the RFP is for consulting services.</p>
<p>While going to the trouble to put together an RFP and select a respondent does take time, it also has some advantages:</p>
<ul>
<li>The process of putting together the RFP forces your organization to establish internal consensus about the project before engaging a consultant</li>
<li>The RFP allows you to attract a wider range of potential respondents than you may have personal connections with.</li>
</ul>
<p><strong>Why use ACN?</strong></p>
<p>As a professional association of career consultants, ACN distributes your RFP to a core group of high-quality, reasonably-priced practitioners with a wide array of experience and – just as importantly – a professional network of potential colleagues. For projects of larger scope, ACN members can connect with one another to develop a proposal that meets an organization’s needs: according to the most recent member survey, 19% of ACN members have collaborated with one another on projects in the last year. &nbsp;Essentially, submitting an RFP through ACN is the fastest way an organization can get their project in front of a variety of specialists.</p>
<p><strong>What goes in an RFP?</strong></p>
<ol>
<li>Know what you want. &nbsp;Recently, a colleague of ours encountered an organization that distributed four versions of a single RFP in three months’ time, each with a slightly different scope and project description. This is a red flag – if your staff and leadership aren’t comfortable with an RFP going out, then it needs to be revised internally until they are.</li>
<li>Be clear. &nbsp;In our experience, many organizations have little experience in preparing RFPs, and their initial project description may not be a clear description of what they are really looking for. &nbsp;For example, many projects include the term “strategic planning” to describe anything from a board-level strategic plan to chart the future of the organization to a more tactical plan for executing existing organizational priorities or initiatives.</li>
<li>Be specific. If your RFP is only 2-3 pages, it’s a good bet that consultants will have a lot of unanswered questions about the project. If your work plan depends on conducting interviews, for instance, but it’s not clear how many interviews the consultant will need to conduct, it will be difficult for them to provide you with an accurate price. &nbsp;In order to help consultants prepare an accurate work plan and pricing, provide the detail they need. &nbsp;An organizational chart and explanation of which parts of the organization are affected by the project is extremely helpful. &nbsp;Also, be as specific as you can about the timeline you are expecting and any special constraints that will affect the project – such as a special event that will be a major factor for staff time for the 2 months prior and 2 weeks after the event.</li>
<li>Set a budget. In our experience, pricing in RFPs is sometimes like a game of “chicken” – no one wants to set the price first. Organizations worry that consultants will develop a project plan that uses the entire budget, while consultants are leery of doing the work of putting together a proposal until they know that an organization has budgeted an adequate amount. &nbsp;But by being explicit about their budget, organizations will attract the most qualified candidates who can do the work and stay within your budget. If a proposal comes through that seems as if the consultant is “padding” the scope of work to meet the budget – it’s easy enough to put their proposal in the “no” pile!</li>
<li>Be open and fair. &nbsp;Independent consultants may not have graphic designers to polish their proposals – but that doesn’t mean that the quality of the work is any different. &nbsp;Stay focused on the substance of the expertise you are looking for. &nbsp;Also, remember that independent consultants don’t get paid for writing proposals, so please be mindful of the time you are asking them to put in. &nbsp;There are occasionally situations where the client asks for so many revisions to the proposal that they are essentially looking for a good portion of the project work to be done as part of the selection process. &nbsp;This is an unfair expectation, and can make for a difficult start to a relationship.</li>
</ol>
<p>Thanks for taking the time – Best of luck on your next RFP!</p>
<p>– <a href="https://www.acnconsult.org/editprofilecb/userprofile/DeborahMcCann">Debbie McCann, W4Sight</a></p>
<p><em>Want to submit an RFP through ACN’s portal? Click</em> <a href="https://www.acnconsult.org/submit-an-rfp">here</a><em>.</em></p>https://acn.wildapricot.org/get-support/4455286
https://acn.wildapricot.org/get-support/4455286Tue, 13 Dec 2016 17:05:27 GMTWinning an RFP through ACN<p><img src="https://www.acnconsult.org/resources/Pictures/ACN-McCann-photo.jpg" alt="" title="" border="0" width="150" height="181" align="right" style="margin: 0px 0px 0px 10px;"><span><span><strong><span><strong>By: Debbie McCann, W4Sight LLC</strong></span></strong></span></span><br>
One of the benefits of ACN membership is receiving notifications of Requests for Proposals (RFPs). Through ACN’s process of distributing RFPs, W4Sight has both successfully secured new business and gained some insight about the RFP process. We’ve written two posts about the process from a consultant’s viewpoint – this post focuses on our fellow consultants. Next week we’ll follow up with a post geared toward nonprofit organizations.</p>
<p>Every time we receive an email from ACN announcing an RFP, I take a quick look. If the project description that appears in the ACN “cover email” piques my interest, I take the time to read the entire document as soon as possible. The first thing I look for is whether the services needed are in our area of expertise. Many are not, but it’s important to read carefully. Here are a few tips we’ve learned:</p>
<p><strong>Be mindful of timing:</strong> RFPs coming through the ACN pipeline may have been released a week or two earlier, leaving a tight deadline to respond. If you are receive the RFP only a few days or a week before the deadline, some organizations are willing to grant you an extension if you are a qualified respondent. However, you do need to contact them immediately to explain the circumstances and let them know when you can submit a proposal.</p>
<p>Timing is also important because organizations with larger projects also sometimes hold a bidders’ conference, and the date and time are listed in the RFP. It’s important to check right away so that you don’t miss the opportunity to attend. Some bidders’ conferences are mandatory if you plan to respond to the RFP, while others are optional. If you plan to respond to an RFP and there is a bidders’ conference, it’s a good idea to attend. The organization walks through the project expectations in some detail, and explains the response format required along with any other special requirements. If you think you may need to partner with another consultant to provide the whole range of services needed, leverage ACN’s network to find collaborators.</p>
<p><strong>Decide if it’s worth responding:</strong> Many consultants avoid RFPs because of the time commitment and/or the inherent risk involved. Consultants often believe that they have a much better chance at securing a contract when they have had a chance to cultivate a potential client and get to know their organization.</p>
<p>However, unless you have reason to believe that the open bidding process is just a sham, it may be worth your time if the project is a good fit for your skills. A few factors to consider before deciding to pursue an RFP:</p>
<ul>
<li><strong>Are the services requested comfortably within your area of expertise?</strong> If it’s a stretch, be careful about spending time writing a proposal for a project you’re not really a good fit for.</li>
<li><strong>Does the RFP provide enough detail to put together a solid proposal?</strong><br>
– If it’s vague (a good bet if it’s only 2 or 3 pages), reach out to the primary contact to ask some key questions.<br>
– If the RFP clearly says “no emails/calls”, then don’t harass them. However, make sure that the assumptions you make about your approach that impact your budget and timeline are clearly documented. Make sure you indicate that changes to these assumptions may require an adjustment to the budget/timeline.</li>
<li><strong>Does the project have strategic value?</strong><br>
One of the benefits of responding to an RFP is that it gets you in front of an organization that you might otherwise not have encountered or had a reason to contact. Ask yourself if the organization or project could add strategic value to your practice – either because of the potential network it presents, or because the project would provide you with a key type of reference you don’t already have in your portfolio.</li>
</ul>
<p><strong>Develop a Solid Proposal:</strong> Of course, no RFP is perfect, so consultants need to find creative ways to create useful proposals. For example, we won one project from a client, despite the fact that the organization was unresponsive when we attempted to ask questions prior to the deadline. Because the project was substantial, and an excellent fit with our expertise, we went ahead with the proposal – though with many documented assumptions. Even though some of our assumptions turned out to be incorrect, the clearly documented work plan was enough to convince them that they should meet with us. We were able to collaborate on the revised scope and come up with a more appropriate statement of work after meeting with the organization. In the end, it was a successful project, and an important credential that we could reference later.</p>
<p>If the RFP contains detailed instructions about the response format they want, then follow what they’ve asked for. However, if they don’t, here’s a suggested outline:<br>
Project Understanding – summarize what you think you understand from the proposal, in your own words.</p>
<ul>
<li><strong>Approach</strong> – provide a detailed project plan in narrative form. For each step or phase of the project, clearly indicate what the major tasks are, what resources the client is expected to provide (type of staff and approximate time commitment), and expected deliverables.</li>
<li><strong>Assumptions</strong> – as you are writing up the approach, pay close attention to how you are formulating your work plan. For instance, if the project is to help the client develop a stronger board, and one of your tasks is to identify candidates, make sure you are clear about how many screening calls you are prepared to have, how many interviews you are prepared to do etc. The actual numbers can be updated later, but it’s important for the client to know what your pricing is based on. Another example might be the responsibility for generating materials for a training. You might want to indicate that you will prepare the materials and provide them to the client in electronic form, but making paper copies is their responsibility.</li>
<li><strong>Pricing</strong> – provide a summarized version of your pricing that follows your work plan. If your project approach is in three phases, explain what each phase will cost. Be clear if you are providing a fixed price for the whole scope (assumptions are critical for these projects), or if your pricing is on a time and materials basis at an hourly rate.</li>
<li><strong>Qualifications</strong> – describe your previous experience that’s relevant to the project. Detailed resumes may not be necessary, but the client should definitely get a clear understanding of why they should choose you over others.</li>
</ul>
<p>Best of Luck!<br>
Debbie McCann<br>
<a href="http://www.w4sight.com/">W4Sight</a></p>https://acn.wildapricot.org/get-support/4455241
https://acn.wildapricot.org/get-support/4455241Tue, 13 Dec 2016 06:09:13 GMTPart 2: “How Political Can We Get?” What a non-profit 501(c)3 should know<p><span><em><img src="https://www.acnconsult.org/resources/Pictures/ACN-DeBelle-photo.jpg" alt="" title="" style="margin: 0px 0px 0px 10px;" border="0" align="right"></em><span><strong><strong>By: Denise DeBelle,&nbsp;Law Office of Denise M. DeBelle</strong></strong></span></span><br>
In the last blog, I described certain traps for the unwary non-profit organization if you are politically active and want to avoid risking your 501(c)(3) tax exempt status. Staying non-partisan is key for any 501(c)(3) organization. What about lobbying public officials- can non-profits do that?<br>
<br>
Most definitely yes. But because of the risks of violating specific rules of the IRS, some non-profit organizations get nervous about any lobbying at all. This is unfortunate because non-profit organizations have day to day experience with populations needing government assistance, and in-depth knowledge of issues of public importance. The input of non-profits concerning the action of government and the content of our laws, is sorely needed!<br>
<br>
<strong>What should a non-profit know about lobbying?</strong><br>
<br>
First, IRS regulations <strong>do not <em>prohibit lobbying</em></strong> by a 501(c)(3).<br>
But second: the IRS <strong>does impose limits on the percentage of an organization’s budget</strong> that can be devoted to lobbying.<br>
<br>
This post will lay out the general rules about lobbying for the 501(c)(3) organization: how IRS defines it, how much is permissible, and how to be able to do more of it and still preserve the tax exempt status of your organization.<br>
<br>
Not all advocacy is lobbying. Educating the public, being an expert on a given public issue, or advocating for the enforcement of existing laws, are not, standing alone, lobbying as defined by the IRS.<br>
<br>
<strong>What are the different types of lobbying?</strong><br>
<br>
There are two types of lobbying:<br></p>
<ul>
<li>Direct lobbying</li>
<li>Grassroots lobbying, which is a “call to action” by your organization, in which you communicate to members or the general public to urge them to contact legislators with a specific view on legislation, and you provide them with a mechanism for this contact.</li>
</ul>
<p><strong>Why is it important to know when your organization is lobbying?</strong> Returning to our original point, the IRS limits the amount of lobbying if you are a 501(c)(3) – so you are required to keep track of the percentage of your budget in order to not exceed those limits.<br>
<br>
<strong>There are two ways to compute limits on lobbying applicable to your organization.</strong><br>
The first is the old-fashioned test – an IRS Rule since 1934 – which says that lobbying must be an <strong>“insubstantial part”</strong> of the organization’s activity. You’re probably asking yourself, What is insubstantial? As you can imagine, this is hard to define. It typically would be stated as roughly 20%, but this is not a true benchmark. Please note that churches and religious non-profits must use this test when lobbying, as they do not qualify for the second rule.<br>
<br>
Luckily, Congress enacted a different rule in order to allow more flexibility to 501(c)(3)s. This second test is called the <strong>501(h) election or the 501(h) expenditure test</strong>. It is a simple matter to elect this approach. You must submit IRS Form 5768 (a short form which simply requires a signature of the organization’s officer). What it means is the lobbying your organization does must not exceed the applicable percentage of your budget depending upon the level of overall expenditures.<br>
<br>
Under the 501(h) expenditure test, the organization may spend the following:<br>
<br>
<strong>On Direct Lobbying</strong><br>
20% of the first $500,000 of its exempt purpose expenditures<br>
15% of the next $500,000, and so on, up to one million dollars a year<br>
<br>
<strong>On Grassroots Lobbying</strong><br>
5% of the first $500,000 of its exempt purpose expenditures<br>
3.75% of the next $500,000, and so on, up to $250,000 a year<br>
<br>
For non-religious 501(c)(3) organizations, the 501(h) election is definitely worth your consideration. It allows the voices of your constituents, your Board and staff to be heard and to influence the legislators and public officials deciding issues which affect those constituents.<br>
<br>
Some of these rules can get very specific and detailed, and there are some other ways to increase your activism but still avoid falling into the lobbying definition. So it is best to consult an attorney in this area if you have more specific questions.<br>
<br>
<em>This posting is for information purposes only and is not intended as specific legal advice.</em><br>
<br>
<a href="http://www.debelle-law.com/" target="_blank">Law Office of Denise M. DeBelle</a><br></p>https://acn.wildapricot.org/get-support/4453332
https://acn.wildapricot.org/get-support/4453332Tue, 13 Dec 2016 06:04:21 GMTPart 1: “How Political Can We Get?” What a Nonprofit 501(c)3 Should Know<p><span><em><img src="https://www.acnconsult.org/resources/Pictures/ACN-DeBelle-photo.jpg" alt="" title="" style="margin: 0px 0px 0px 10px;" border="0" align="right"></em><strong>By: Denise DeBelle,&nbsp;Law Office of Denise M. DeBelle</strong></span><br>
Can you correctly answer these three questions about how the IRS views your organization’s – or your client’s – political activity?<br>
<br>
1. TRUE/FALSE: While it is not okay for my organization to directly endorse a candidate on their website, it is okay for us to link to a site of an organization that does.<br>
2. TRUE/FALSE: For our upcoming fundraiser, we can invite one political candidate to speak about issues of interest, as long as they do not speak about the upcoming election campaign.<br>
3. TRUE/FALSE: We can legally distribute a voter’s guide intending to educate our members, clients, and the general public on issues relevant to our organization, as long as the Guide makes comparisons between the candidates’ positions and that of the organization.<br>
<br>
Surprise! The answer to all three of these is FALSE. We’ll explore legal options to these issues at the end of this post.<br>
<br>
At its most basic, the IRS prohibits any partisan political activity by a non-profit organization, its staff, Board or volunteers when acting in the capacity of the organization. Do you or your non-profit clients get political? If so, you should know something about the relevant IRS rules.<br>
<br>
A non-profit organization incorporated under Section 501(c) 3 is organized primarily as a “charity.” This designation distinguishes this type of organization from other non-profits, entitling donors to these organizations to receive a tax deduction. Political activity is outside of the charitable function of the organization.<br>
<br>
<strong>So any level of political activity, whether federal, state or local electioneering, is never OK.</strong><br>
<br>
What counts as political activity? Organizations should ask themselves: Do we lobby elected officials? Have we ever invited candidates to a forum around election time? Have we taken folks to Springfield or Washington D.C. to meet with legislators?<br>
<br>
If the answer to any of these is yes, then the following rules are the basics you must know in order to avoid risking tax penalty or loss of tax exemption:<br>
1. Do make your views known to legislators and candidates, but<br>
2. Do not show favoritism to any candidate for election, or in any way participate or cooperate with any organization which endorses a candidate for public office.<br>
<br>
This blog post addresses #2. In a subsequent post, I will discuss #1.<br>
<br>
Let’s go back to the TRUE/FALSE questions from the beginning of the post. What is the problem with these practices? Let us modify the above examples to show what the organization can do differently.<br>
<br>
1. When discussing issues of public concern on your website, simply do not make a reference to any particular candidate in an upcoming election.<br>
<br>
2. It is perfectly permissible to host election or candidate forums. But the organization must invite all candidates for that particular office, and give each candidate equal access to your audience.<br>
<br>
3. Voter Guides can discuss the issues in detail even if an election is looming. The key for your Voter Guide is to be sure not to describe the voting patterns of candidates in a way to suggest endorsement or approval of any particular candidate.<br>
<br>
But wait: does this mean a 501c3 cannot take positions on issues which may imply criticism of an officeholder, during the height of an election campaign? No! A 501c3 organization, including religious organizations, may lobby to influence legislation and that lobbying need not stop merely because an election is going on.<br>
<br>
The next article will explore the rules for lobbying, and how non-profits can “elect” to permit more lobbying.<br>
<br>
This is general information and is not intended as legal advice. For more detailed guidance as to your organizations’ practices, an attorney should be consulted.<br>
<br>
<a href="http://Law%20Office%20of%20Denise%20M.%20DeBelle" target="_blank">Law Office of Denise M. DeBelle</a><br></p>https://acn.wildapricot.org/get-support/4453326
https://acn.wildapricot.org/get-support/4453326Mon, 12 Dec 2016 14:05:15 GMTFive Ways You Can Stop Wasting Time in Meetings<p><span><em><img src="https://www.acnconsult.org/resources/Pictures/ACN-Decker-photo.jpg" alt="" title="" style="margin: 0px 0px 0px 10px;" width="150" height="209" border="0" align="right"></em><strong>By: Diane C. Decker,&nbsp;Quality Transitions</strong></span><br>
We’ve all been in meetings that are productive, useful, and just the right amount of time. We have also all been in meetings that are, well, the opposite of those things. While meetings obviously help us get work done, they aren’t always efficient – it’s been estimated that 70% of the time spent in meetings is wasted. Meetings are here to stay – so it makes sense to use these five practical and easy strategies for meeting participants and leaders to increase meeting productivity.<br>
<br>
<strong>1. Prepare, Implement, and Follow-up</strong><br>
Oftentimes, people devote the five minutes before a meeting to prepare by skimming the agenda or jotting down a few notes. This limited focus – rather than doing the work necessary before and after the meeting – can result in wasted time for everyone in the meeting.<br>
<br>
Prepare. Before the meeting, determine its purpose, outputs, and participants. From the purpose, create a detailed timed agenda and send it with pre-work. Providing pre-work increases the quality and creativity of the meeting’s output because more thought has gone into it. Anticipate and plan for issues that may arise during the meeting.<br>
<br>
Implement. At the start of the meeting confirm who will lead the group through the agenda and who will take notes. These roles can be rotated, to help build skills and ownership in the meeting. During the meeting, keep the agenda in front of people. Start the meeting with a review of any decisions and follow-up from the previous meeting. Use a set format for meeting notes. Avoid lengthy notes by documenting: 1) key decisions made 2) next steps and those responsible for implementation 3) information to be shared beyond the meeting and 4) pre-work for the next meeting.<br>
<br>
Follow Up. Before leaving, evaluate the meeting and confirm decisions that were made, next steps, and owners of each of the action items. For groups with meeting guidelines, discuss which guideline was strong and which one needs to be improved. If you don’t have guidelines, then share what went well and what needs to be improved in future meetings.<br>
<br>
After the meeting, distribute the notes for review. Everyone prepares for the next meeting and those with assigned tasks complete them.<br>
<strong><br>
2. Create a Realistic Agenda</strong><br>
Putting together an agenda is like cooking-we need to have the right ingredients and add the proper amounts in the correct order. From the meeting purpose, identify specific agenda items and put them in a logical order. Determine who owns each agenda item, which includes leading the discussion, and make sure they know what is expected. Finally, determine the amount of time for each item, working with the discussion leaders.<br>
<br>
<strong>3. Stay on Track</strong><br>
For regularly scheduled meetings, establish meeting guidelines and keep them within view. The guidelines are a code of conduct developed by the group. Each person agrees to follow the guidelines, and say something when they aren’t being met. Example guidelines include:<br>
<br>
Focus on moving forward, rather than overworking an issue<br>
If you have a concern with a decision, say so in the meeting with everyone present<br>
Strive for balanced participation<br>
Another tool for staying on track is the use of a “parking lot” or “issues list.” Whenever anyone brings up an idea or issue that is not on the agenda, it is written in a place that everyone can see. At the end of the meeting, it is determined who will own follow-up on each item. Some items may no longer be relevant by the end of the meeting while others become agenda items for a future meeting.<br>
<br>
<strong>4. Shorten Meeting Time</strong><br>
The use of the huddle format can shorten meetings. No one sits during these 5-20 minute meetings, which increases the sense of urgency and productivity. Huddles are ideal for information sharing and less complex decision making.<br>
<br>
A common cause of wasted time is starting meetings late. Recently I attended a meeting that started more than 15 minutes late primarily because the meeting leader rushed in late and disorganized. She then decided to wait “a few more minutes” for others. If you are the meeting leader, whenever possible start a meeting on time even when there are people missing. Doing so motivates latecomers to come on time in the future so not to miss any part of the meeting.<br>
<br>
<strong>5. Next Steps</strong><br>
If you are motivated to improve a meeting you regularly lead, send this blog to the meeting participants and suggest you take 10-15 minutes at the next meeting to agree on one step you will take as a group to cut the amount of time wasted in future meetings. If you are not the leader, send the blog to that person and express your interest in helping to improve the meetings further. For tips to address the unique challenges of virtual meetings: Four Ways to Vitalize Your Virtual Team<br>
<br>
Learn more about Diane Decker on her ACN Member Profile and <a href="http://qualitytransitions.com/" target="_blank">her website</a>.<br></p>https://acn.wildapricot.org/get-support/4453330
https://acn.wildapricot.org/get-support/4453330Mon, 12 Dec 2016 06:02:36 GMTConnecting the Dots Between Advocacy and Your Mission<p><span><em><img src="https://www.acnconsult.org/resources/Pictures/ACN-OSullivan-photo.jpg" alt="" title="" style="margin: 0px 0px 0px 10px;" border="0" align="right"></em><strong>By: Laurel O’Sullivan, The Advocacy Collaborative, LLC</strong></span><em><strong>.<br></strong></em><br>
<strong>Who does it better?</strong><br>
Consider two immigration-focused nonprofit organizations: “Nonprofit A” devotes their programmatic efforts to serving individuals on a case-by-case basis, helping them as they wade through the ocean of paperwork and red tape. The second organization, “Nonprofit B”, provides similar support, but also devotes a significant portion of their energy to advocating for policy changes that lighten the burden for immigrants trying to gain citizenship. Which organization helps more people?<br>
<br>
Too often, the nonprofit sector either undervalues – or worse, avoids altogether – the power of advocacy. Time and again, nonprofits expect a CEO or other staff person to “do advocacy” in their spare time, relegating it as separate from the rest of the organization. This separatist approach – defining advocacy as an “add on” that continually falls to the bottom of the list – represents a significant missed opportunity because high-quality advocacy advances an organization’s mission while achieving impact on a scale not possible through direct service or programs alone. (Perhaps you’ve guessed the answer to our question, above — by adopting a systemic approach to changing policy, Nonprofit B can achieve far greater impact and serve far more individuals than Nonprofit A can by only serving individuals on a case by case basis.)<br>
<br>
The separatist approach is also evident in most of the trainings for advocacy and policy. These tend to be narrowly focused on individual skills building – learning the legal rules of advocacy or how to talk to policymakers. Yet research suggests that when individuals are trained about policy and advocacy in isolation from their organization and its context, the organization’s overall effectiveness suffers. In turn, advocacy is further marginalized and organizations remain simply reactive to the policy landscape, rather than proactive.<br>
<br>
The truth is, advocacy that is connected to the mission is the single most effective strategy a nonprofit can employ to have impact, because it has the potential to enhance all the things an organization does. By taking a public position on an issue, a nonprofit increases its likelihood of attracting funders, volunteers and garnering more public support for its work. It’s also an opportunity to demonstrate leadership to external audiences including policymakers and constituents.<br>
<br>
Successful advocacy requires that an organization recognize that there are certain internal conditions that must be in place to support advocacy. And these conditions need to align with the multiple dimensions or facets of advocacy: the external dimension focuses on the broader policy environment; the internal dimension highlights the organizational, programmatic and individual-level components of policy work; and in between, there are linkages and alignments that must be made among the program, stakeholders, and the internal supporting functions of an organization like communications, finance, technology and fundraising.<br>
<br>
<strong>What does an advocacy-forward organization look like?</strong><br>
Organizations with a strategic focus on advocacy routinely plan for and prioritize advocacy; it is built it into thee character and culture of their organization. How do they accomplish this?<br>
<br>
1. A commitment to advocacy is firmly in place at the leadership level. This includes ensuring the board understands the value of advocacy and how it can advance the organization’s mission.<br>
<br>
2. The mission, vision and values of the organization include advocacy as an intrinsic component. Research has shown that the most successful advocacy organizations are ones that have integrated it by sharing leadership, recruiting board members with advocacy knowledge, building a culture of support for advocacy<br>
<br>
3. A plan and mechanisms for engaging stakeholders exists including communications devices such as newsletters and social media outlets, technology and databases for tracking and managing relationships with constituents, as well as resources and ready made materials for constituents to take action on specific bills.<br>
<br>
In short, similar to any other strategy for achieving effectiveness, advocacy must be planned for in advance to ensure the organizational dots are connected and aligned to achieve maximum impact and the internal conditions for advocacy to take root, grow and be nurtured are in place. Only in this way will advocacy begin to be seen as part of the nonprofit business model.<br>
<br>
For more on Laurel’s work, or to contact her directly, <a href="http://advocacycollaborative.com" target="_blank">check out her website</a> and her ACN profile!<br>
<br>
<em>By Laurel O’Sullivan, Principal and&nbsp;Founder, The Advocacy Collaborative, LLC.</em><br>
<br></p>https://acn.wildapricot.org/get-support/4453321
https://acn.wildapricot.org/get-support/4453321Sun, 11 Dec 2016 17:00:18 GMTThe Board, The Advisor, and the Investment Policy Statement: Laying the Financial Foundation<p><img src="https://www.acnconsult.org/resources/Pictures/carey-friemoth.jpg" alt="" title="" border="0" width="150" height="151" align="right" style="margin: 0px 0px 0px 10px;"><strong>By: Carey Freimuth,&nbsp;Caritas Financial</strong></p>
<p>In our last post, we discussed the importance of nonprofit Boards creating and maintaining an Investment Policy Statement (IPS). This article discusses the role of an IPS in the relationship between boards and their financial advisors.</p>
<p>A recent survey found that among private foundations with $1 to $10 million in assets, 30% did not have an IPS and additionally, 35% were not working with an advisor.[1] These lapses can lead to a breach in fulfilling one’s fiduciary responsibility.</p>
<p><em>What is the role of the board vs. financial advisors?</em></p>
<p><strong>The Board:</strong> it is up to the board to actively oversee an organization’s financial performance. According to the Prudent Investor Laws, the board or organization needs to adopt investment policies, thoroughly vet its financial advisors, and regularly review performance to fully fulfill their fiduciary responsibilities. While this sounds daunting and time consuming, board members can delegate some of those responsibilities to an advisor. This increases the investment oversight, especially if the board members lack sufficient time to dedicate to this responsibility. <strong>This protects both the organization and the board members:</strong> if followed, the individual members of the board and the organization are less likely to be liable for the actions of investment underperformance. While it seems straightforward, many boards are lax in updating or reviewing the IPS (or even creating one!), reviewing performance, and monitoring their advisors.</p>
<p><strong>Financial Advisors:</strong> Advisors can help provide board members with confidence they are doing good while acting responsibility. The board can delegate investment decision making to an advisor to help with faster decision-making, implementing a more goals focused strategy to improve risk management, and better track progress against goals. Moreover, many officers and trustees welcome additional education on the standards of care that they must follow as fiduciaries of the organization.</p>
<p>Like many people in their role, board members can be uncomfortable with all of the responsibilities and processes that need to be addressed in order to protect the organization and their position within the organization as a fiduciaries. An IPS lays the foundation for an organization’s overall governance structure to ensure that fiduciaries are fulfilling their obligations. A good IPS should clearly define the relationship between the advisor and client right from the start. These expectations give advisors a better sense of what the clients expect in terms of volatility and returns, while helping to educate clients on realistic outcomes and the importance of staying the course in challenging markets.</p>
<p>In sum, this division of labor that allows boards to supervise third-party advisors and the advisors to do the work of actively investing an organization’s assets creates a solid check and balance. And once your organization has an IPS in place that is reviewed regularly, you can feel more confident you are fulfilling your fiduciary responsibilities.</p>
<p>Best of Luck,<br>
Carey Freimuth</p>
<p><font style="font-size: 12px;">[1] Source: Association of Small Foundations 2013</font></p>https://acn.wildapricot.org/get-support/4455236
https://acn.wildapricot.org/get-support/4455236Sun, 11 Dec 2016 16:57:11 GMTWhy Cash Isn’t Necessarily King: The Importance of an Investment Policy Statement<p><img src="https://www.acnconsult.org/resources/Pictures/carey-friemoth.jpg" alt="" title="" border="0" width="150" height="151" align="right" style="margin: 0px 0px 0px 10px;"><span><strong><strong>By: Carey Freimuth,&nbsp;Caritas Financial</strong></strong></span><br>
A primary responsibility of board members is to serve as trustees of the organization’s assets by exercising due diligence to ensure that its financial situation remains sound. But while fiduciaries need to protect an organization’s assets, they also need to ensure that aversion to risk doesn’t compromise the mission of the organization over the long term.</p>
<p>The old adage ‘cash is king’ doesn’t always apply in the world of investments. While many fiduciaries believe they are being prudent by conservatively investing all the organization’s assets in cash, this can actually <em>lose them money in real dollar value.</em> Simply put, <strong>the compounding effect of inflation over time results in erosion of the organization’s purchasing power.</strong></p>
<p><strong>What is an IPS?</strong><br>
The board needs to weigh the options and establish guidelines and policies that minimize their exposure to identified portfolio risks such as a lack of diversification or a level of volatility that is mismatched with the IPS’s stated goals and time horizon. This is where the Investment Policy Statement (IPS) comes into play as an important document by which investment decisions are based. In its most basic form, an IPS is a document which sets forth in writing how an institution’s money is to be managed by presenting financial objectives in the context of how much risk the fiduciaries are willing and able to bear. While an IPS should be customized to meet the needs and mission of the organization, the document should include:</p>
<ul>
<li><strong>Asset allocation:</strong> What types of investments will meet the organization’s goals and risk tolerance?</li>
<li><strong>Time horizon:</strong> When will the funds be needed or will they be held into perpetuity?</li>
<li><strong>Rebalancing and spending policy:</strong> To what degree does the organization depend on the funds to support their operating budget?</li>
<li><strong>Moral or ideological convictions of the organization:</strong> Are there any restrictions on holdings based on these beliefs or is socially responsible investing a priority?</li>
<li><strong>Responsibilities and roles:</strong> What is each party’s involvement in the investment decision making process and is this clearly defined?</li>
</ul>
<p><strong>Why have one at all?</strong></p>
<p>An IPS is essential to an organization’s strategic and financial growth. They offer three major benefits:<br></p>
<ol>
<li><strong style="">Provide financial discipline in tough times.</strong> An IPS instills discipline in times of market volatility by clearly defining the goals and objectives of the portfolio while outlining a specific plan and strategy to manage the funds in order to reach those goals. It can also be used as a tool to manage and minimize any risks identified throughout the process.<br></li>
<li><strong style="">Maintain strategic intent.</strong> A sound, thoughtful IPS is crucial to advancing the strategic intent of the organization while helping fiduciaries mitigate potential risks to the assets. It helps everyone focus on the mission of the organization and provides continuity in decision making.<br></li>
<li><strong style="">Reassure donors.</strong> By maintaining discipline during tough times and staying true to your organizational mission, you can demonstrate to potential donors your commitment to managing the assets with care, skill and prudence. When a donor contributes money, they do so with the expectation that the board will invest wisely and use that money to further the mission of the organization.<br></li>
<li>The best way to give donors confidence in this is through the creation and regular review of an IPS[1].<br></li>
</ol>
<p>Example of IPS template:<br>
<a href="https://www.acnconsult.org/wp-content/uploads/2016/06/Investment_Policy_Worksheet.pdf">Investment_Policy_Worksheet</a></p>
<p>Best of Luck,<br>
Carey Freimuth</p>
<p><font style="font-size: 12px;">[1] While the document is not meant to be changed frequently, it should be periodically reviewed to ensure all language is up-to-date reflecting current fiduciary standards and long-term objectives. For example, the Uniform Prudent Management of Institutional Funds Act (UPMIFA) of 2006 replaces the Uniform Management of Institutional Funds Act (UMIFA) of 1972. It is important to review an IPS to ensure it fully captures the updates of such legislation.</font></p>https://acn.wildapricot.org/get-support/4455231
https://acn.wildapricot.org/get-support/4455231Sun, 11 Dec 2016 16:55:56 GMTCan Consultants Help Nonprofits Help Companies with CSR?<p><span><strong>By: James Reeves,&nbsp;Do Well Do Good, LLC.</strong></span><br>
This guest post, from James Reeves of Do Well, Do Good LLC, highlights some of the great discussion from ACN’s February 25th program. A special thanks to James and our other participants!</p>
<p>This morning I had the honor of speaking on a panel for <strong>the Association of Consultants to Nonprofits, along with Bill Bonner of Bonner of IMPR</strong> and Leah Bradford of the Kraft Foods Group and the Kraft Foods Group Foundation. In addition to being really impressed by ACN as an organization, I really enjoyed the lively and engaged crowd that had thought provoking questions and great contributions.</p>
<p>My task was to answer two questions:<br></p>
<ol>
<li>How are companies using consultants to develop corporate partnerships related to Corporate Social Responsibility (CSR) or sustainability?<br></li>
<li>Does this market have potential?<br></li>
</ol>
<p><strong>CSR Defined</strong><br>
First, I think it’s important to start nearly every conversation about CSR by defining it. The simplest definition I give is that CSR is managing and organization’s business operations in a way that is good for people, profit, and the planet. CSR deals with a wide range of issues: supply chain &amp; human rights protection, lobbying, workers’ pay and benefits, product life cycles, investments, public disclosure practices, diversity and inclusion, and carbon emissions to name just a few issues.</p>
<p>A very key point is that CSR includes philanthropy, volunteering, and community relations, but as I pointed out, CSR is much more than that. Don’t conflate the two terms.</p>
<p>For the purpose of this article and this morning I treated the terms CSR and sustainability as being synonymous.</p>
<p><strong>A Nonprofit’s Role</strong><br>
For the most part, nonprofit organizations tend not to engage with companies – specifically in helping them with CSR. For the most part, most nonprofits are geared to work with companies in the community relations or cause-marketing spheres. However, occasionally a nonprofit can help companies fulfill their goals related to the social or environmental impacts of their business.</p>
<p>A great example is Aspire, a Chicagoland nonprofit that helps differently abled adults attain meaningful jobs (as well as many other services). The nonprofit partnered with OfficeMax and the Kessler Foundation to develop a training program to help Aspire’s constituents thrive in a retail or warehouse work environment. (Full disclosure: years ago, I worked and consulted for OfficeMax, but I had no involvement in this program). This program helped OfficeMax with its diversity and inclusion efforts while also servicing Aspire’s constituents.</p>
<p><strong>The Difference: A CSR or Philanthropic Role</strong><br>
So how is this not just a company sponsoring a nonprofit? The key distinction for me between a philanthropic program versus a nonprofit helping a company with CSR is as follows…</p>
<p>For cause-marketing or community relations programs (philanthropy/volunteering) a nonprofit’s role is primarily focused on using its assets to help a company. This could be the non-profit’s brand or logo to be put on a product’s packaging to increase sales and support a cause. Or a nonprofit using its Board of Directors to help a company’s executives create relationships in the community and build their leadership capabilities.</p>
<p>A nonprofit is helping a company with CSR when it is primarily focused on using its expertise to help a company. In this case, Aspire has a unique and differentiating skill set that few organizations have: insights into the employment of adults who have a different set of abilities.</p>
<p><strong>Tough Love: A Role for Consultants? Not really.</strong><br>
While I have helped some of my clients with their relationships with nonprofits, I do not see it as a major market for consultants to dive into. So my tough love advice is: will it put food on your table? Maybe. But if so, it’ll likely just be a side dish.<br>
The central question for any business and especially consulting is whether you offer products or services that solve a problem so that people are willing to pay money for it. Companies rarely need help from consultants for match-making services, as an example. There may be some services where consultants are needed for facilitating group meetings with nonprofit organization, but in my experience this hasn’t been a huge market. (I do think, however, that there is a much bigger role for consultants to play in helping non-profits with their cause-marketing, volunteering, and philanthropic capacity.)</p>
<p>However, things aren’t so bleak. The projects I have worked on for my for-profit clients include facilitating such meetings and benchmarking existing and not-existing relationships against future needs related to CSR strategies. Yet, this wasn’t something I specifically “sold” as a service to my clients. Rather, I received these projects because I was already a trusted adviser, known for excellent research, writing, analytical, and facilitation skills. So while those were the services I provided, they just happened to be on the subject matter of relationships with non-profits or Non-Governmental Organizations (NGOs) related to specifically to CSR programs.</p>
<p>Sponsorships between nonprofits and companies dealing with CSR are so closely ingrained with a nonprofit’s core abilities that bringing in consultants would be redundant. In fact, one could argue that it would be a warning sign that a nonprofit may not be as strong of a partner if they have to bring in non-ancillary help.</p>
<p>So my honest advice to consultants is to focus on your core competencies rather than trying to become the central hub of nonprofit and for-profit relationships. If such projects arrive, treat them as welcome appetizers rather than regular entrees.</p>https://acn.wildapricot.org/get-support/4455228
https://acn.wildapricot.org/get-support/4455228Sun, 11 Dec 2016 16:26:26 GMTThe 10 Commandments of Successful Rebranding of Non-Profits<p><img src="https://www.acnconsult.org/resources/Pictures/jimheininger.caption.png" alt="" title="" border="0" align="right" style="margin: 0px 0px 0px 10px;"><span><strong>By: Jim Heininger,&nbsp;Dixon|James Communications</strong></span><br>
The potential is so promising: a striking new name, a more relevant promise to customers, the greater ability to enter new markets. All these outcomes can be achieved with the rebranding of an outdated or past-its-prime image. We’re seeing an unprecedented number of companies, non-profits, destinations and even sports teams embarking on efforts to gain this differentiated edge. Assisted Living Concepts rebrands as Enlivant to show more promise in its aging services; the community of Buffalo, New York, rebrands itself as a hockey mecca; and the Washington Redskins football team are under increasing pressure to rebrand what many see to be an outdated and insensitive trademark.</p>
<p>Rebranding should be viewed as a strategic growth driver. The ability to reposition your business or organization to better capture new growth, attract better talent or more easily globalize is an investment in your future. Remember, when Steve Jobs returned to Apple Computer in 1977 he renamed the company simply Apple, enabling it to launch other technology advancements for consumers. Now it ranks as the globe’s most valuable brand. But the rebranding process, takes time, lots of energy and investment. Just look to Radio Shack whose valiant efforts to revitalize its retail brand are hampered by its struggling financial performance. It finally filed for bankruptcy earlier this year.</p>
<p>We recently rebranded a senior health care organization whose 90-year-old brand made it challenging to grow revenue in an increasingly regulated and margin-strained industry. The group’s wise strategic plan called for expansion of service lines to younger individuals beginning at age 55 that would support their aging process and develop relationships for a broader range of services. Rebranding the organization with an aspirational name allowed it to tell a contemporary and differentiating client service story. We also coined a new business category of “adult life services” that created context for more lifestyle (education, fitness and wellness) and in-home care services to be marketed over time. The business transformation’s success even surprised client leadership as fellow industry players came calling asking for advice on how they had reinvented themselves in what seemed like an industry stuck in old models. The client has since established a business consulting capability which helps similar industry players transform to better meet the needs of aging Americans. It stands as a good example of how rebranding can open new doors and accelerate growth.</p>
<p>Our experience with rebranding non-profit organizations suggests you follow these 10 fundamental principles if you want to create a forward-facing organization loaded with opportunity:<br>
<strong><br>
1. Use rebranding to accelerate growth.</strong> Big changes should deliver big outcomes. Plan strategically and opportunistically to revive your business and its growth.</p>
<p><strong>2. Update your brand promise.</strong> True rebranding is not just refreshing your logo or adopting a new name, it’s the all-encompassing process of renewing your promise to customers and stakeholders, updating the core driver of your organization.</p>
<p><strong>3. Revisit your mission statement and vision too.</strong> Every rebranding assignment we’ve led has included the update of the foundational statements of the organization. Refreshed organizational values will also need to align with the desired new brand behaviors that you want employees to embrace and convey in their work.</p>
<p><strong>4. Give your new brand elasticity.</strong> This is the time to give your brand the ability to stretch and grow as the organization requires. Give it room to support your long-term strategic vision.</p>
<p><strong>5. Engage leadership from the start.</strong> Change starts from the top. An aligned group of management must communicate the business case for change and carry your new banner forward.</p>
<p><strong>6. Rebrand from the top down, and inside out.</strong> Leadership must first embody the new brand values and demonstrate them for employees who become your most important brand ambassadors. Involve and engage your employees in the process and they’ll more actively evangelize the new positioning. Only announce your rebranding once your internal ambassadors can confidently deliver it externally.</p>
<p><strong>7. Instill the new brand into your culture.</strong> Seize the opportunity to initiate cultural changes that reinforce new on-brand behaviors. Rebranding is also one of the rare times that you can work to banish unproductive cultural dynamics and instill desired new cultural rituals and practices. This all-encompassing change presents the rationale to encourage employees to “let go” of long-held unconscious ways of behaving that limit your company success.<br>
<strong><br>
8. Utilize change management principles to align understanding and support.</strong> Businesses don’t change, individuals do. It’s important to use proven processes for gaining understanding, acceptance and participation in your brand change. In their 2008 assessment of rebranded companies, academicians Merrilees and Millers asserted that because rebranding is an incremental change process, as opposed to a radical change, it necessitates the use of change management considerations, especially at the initial design level of the new vision formulation.</p>
<p><strong>9. Align all communications and actions behind the new brand.</strong> Every piece of communications, marketing and visual identify must reflect the new visual identity. Likewise there must be a noticeable link between your products and customer service with the updated brand promise for stakeholders to believe your new positioning. Once you’ve complete that, plan new signature events that uniquely activate your revitalized brand.</p>
<p><strong>10. Formally launch your new brand.</strong> Set a date to flip all branding elements simultaneously for maximum impact. This helps you build anticipation internally and leaves little doubt that you’ve committed to this exciting, all-encompassing change.</p>
<p>Approach the process with this level of engagement and substantive change and you are more likely to set a solid foundation for future growth and expansion.</p>
<p>Best of Luck.</p>https://acn.wildapricot.org/get-support/4455182
https://acn.wildapricot.org/get-support/4455182Sun, 11 Dec 2016 16:24:02 GMTLooking Ahead to Celebrating the Sector: Guest Post by Delia Coleman<p><img src="https://www.acnconsult.org/resources/Pictures/ACN-Coleman-photo-300x300.jpg" alt="" title="" border="0" width="150" height="150" align="right" style="margin: 0px 0px 0px 10px;"><span><strong>By: Delia Coleman, Forefront</strong></span><br>
I’m really excited to be a part of ACN’s Annual Meeting and celebration of the sector – this has been a tough year for the nonprofit sector and any day spent sharing our successes and learning from each other is an important one. But our successes don’t exist in a vacuum. Our gutsy wins exist in an openly hostile budget environment, a competitive field, and within a city and state struggling with big problems.</p>
<p>And that’s the environment we already know about. What about the issues the sector is only just barely aware of? How are we supposed to get ready for those? What are the strategic decisions our sector, and individual organizations, are going to be forced to make?</p>
<p>And what if we could anticipate those decisions and prepare now?</p>
<p>While the primary external factor for Chicago nonprofits today has been around funding and budgets, there are other issues looming in the distance: the further privatization of services, nonprofits losing out to for-profit providers, the cultural taboo against talking publicly about mergers &amp; acquisitions (or other types of strategic partnerships) while outside pressure mounts for the sector to do more work with fewer resources.</p>
<p>These outside pressures force a moment for our sector. It’s not a moment to rethink our purpose, no. We are still here to turn places into communities through education, healthcare, arts and culture, youth development, protecting our environment, or caring for the most at risk. But perhaps it is time to think about what place-making and community-strengthening need to look like in a future that is rapidly approaching. Our programs, our partners, our business models – all of this may need to look and perform differently if we are going to remain the invisible hand holding up our communities.<br>
Maybe we won’t be so invisible, then. And then things can really start changing.</p>
<p>These success stories at your Annual Meeting are more than success stories – they’re bellwethers for a sector that needs to find a way to move nimbly from mere Survival and Sustainability to Thriving in a highly competitive environment.</p>
<p>I can’t wait to see these stories grow and take root. I hope I’ll see you there.</p>
<p><em>Delia Coleman Vice President, Strategy &amp; Policy Forefront</em><br></p>https://acn.wildapricot.org/get-support/4455179
https://acn.wildapricot.org/get-support/4455179Sun, 11 Dec 2016 16:22:09 GMTInfrastructure: Not Alluring, but Imperative<p><img src="https://www.acnconsult.org/resources/Pictures/ACN-Wishnick-photo.jpg" alt="" title="" border="0" align="right" style="margin: 0px 0px 0px 10px;"><span><strong>By: Amy Wishnick, Wishnick &amp; Associates, LLC</strong></span><br>
<span style="font-size: 12pt;">Infrastructure: “The underlying foundation or basic framework (as of a system or organization)” as defined by the Merriam-Webster Dictionary. Not particularly alluring.</span></p>
<p>The esteemed panel of nonprofit professionals speaking at the ACN’s 2015 annual meeting shared many worthwhile insights about current issues and trends in the nonprofit sector. One in particular that resonated was the importance of infrastructure. The point made in the discussion was that, to paraphrase, infrastructure should not be ignored; it is imperative for mission fulfillment.</p>
<p>Mission fulfillment – programs and services – now we’re talking. Yet, without support, the infrastructure, they would not be as significant and might not even exist.</p>
<p>Highly developed programs and services can only go so far if any aspects of an organization’s infrastructure are less developed. Why? Because all aspects of an organization are intertwined. Let’s use a restaurant as an example. We all have had an experience at a restaurant with a terrific chef, a stunning menu, and a beautiful room that, sadly, had a slow kitchen, a disinterested wait-staff, and – you fill in the blanks. If we think of a restaurant’s concept and food as mission and program and the rest as the infrastructure, we see how critical these things are to success. Without a solid infrastructure – a smoothly functioning front of the house, a knowledgeable and dedicated staff, the right kind of visibility in the community, and attention to the bottom line – no restaurant will survive. Divine food alone cannot ensure success.</p>
<p>If we substitute mission-driven organization for restaurant, and we were donors not diners, we wouldn’t make a second contribution. If we were clients, we might not avail ourselves of the services again. Not only is attention to infrastructure crucial for organizations, it underscores the importance of the work we do as capacity builders and providers of consulting services focusing on board development, governance, fundraising, strategic planning, finance and accounting, grant writing, marketing, communications, evaluation, volunteer management, operations, human resources, technology, and more. Without these critical aspects, an organization’s mission would have no support. In our experiences as nonprofit consultants, we know how important infrastructure is. In addition to compelling missions and meaningful programs, our clients must have:</p>
<ul>
<li>Current strategic plans to assist in decision making and assessing opportunities,<br>
Clear understanding of what it costs to run their organizations and sound financial policies to manage their finances</li>
<li>Appropriate technology and systems</li>
<li>Targeted marketing to spread the word to the right constituencies</li>
<li>Cohesive fundraising strategies that ensure diverse revenue streams</li>
<li>Regular, relevant evaluation</li>
<li>High caliber staff committed to their missions and effectively deployed,<br>
Engaged boards of directors focused on strong governance and mindful stewardship</li>
<li>and more</li>
</ul>
<p>We are privileged to be welcomed by our clients, to get to know their organizations intimately and to develop relationships built on trust so that we can work together to safeguard success and sustainability.<br>
Infrastructure. Not particularly alluring. Imperative.</p>https://acn.wildapricot.org/get-support/4455173
https://acn.wildapricot.org/get-support/4455173Sun, 11 Dec 2016 16:17:31 GMT“Make Peace with Your Conscience, but Don’t be a Patsy”: Negotiating a Contract with a New Client<p><img src="https://www.acnconsult.org/resources/Pictures/catherine_siebel.jpg" alt="" title="" border="0" width="150" height="150" align="right" style="margin: 0px 0px 0px 10px;"><strong><span>By: Catherine Siebe</span>l,&nbsp;Impact Assessment for Foundations and Nonprofits</strong><br>
Listening to <a href="https://www.acnconsult.org/editprofilecb/userprofile/KellyKleiman" style="font-size: 12pt;">Kelly Kleiman</a> speak about developing a contract with a nonprofit client is like being splashed in the fact with cold water. At ACN’s fall program “The Nitty-Gritty Details of Running a Consulting Practice”, Kelly pulled many of us out of our kitten-hugging, social justice reverie to remind us that, “Until they’re your client, you have to recognize that your interests are inevitably at odds. You can’t wish for harmony – you have to set up a structure to assure you’re harmonious.”</p>
<p>An attorney by training and [board development consultant] by trade, Kelly reminded the audience that negotiating a contract with a potential client is both a science and an art. Beyond the obvious elements, a well-structured agreement reflects a number of more subtle efforts on the part of the consultant.</p>
<p><strong>The Lead-In</strong></p>
<p>Why goes into a contract? &nbsp;ACN’s Code of Ethics dictates that our members: 1) Ensure that, prior to accepting any engagement, there is mutual consultant/client understanding of the objectives, scope, work plan and payment arrangements; and 2) Agree in advance with a client on the basis for fees and expenses and charge fees that are reasonable and commensurate with the services delivered and the responsibility accepted. Or, as Ms. Kleiman puts it, to “have a meeting of the minds when we really haven’t had a meeting of the minds yet.”</p>
<p>As for how it’s structured, Kleiman uses the first paragraph is to listen as closely to what the client said and then try to reiterate it back to them – “It’s a test of my ability to actually listen” – &nbsp;to make sure that everyone sees the project in the same light. If you can’t get to a contract that you can both agree on, it’s a canary in a coal mine – understand that it’s not a good fit, and walk away.</p>
<p>What doesn’t go into a contract? For the simplicity’s sake, Kleiman merges her proposal and contract into a single document. A few pieces of advice:</p>
<ul>
<li>Remember that potential clients have a legitimate need to know what they’re buying, but they don’t need to know the specific plan of how the consultant plans to get them there. It’s the difference between scoping it out for yourself (i.e., planning the project) and scoping it to the prospect (i.e., <strong>giving away the milk for free</strong>). Give them as little as possible for them to understand what you will provide.</li>
<li>If a prospective client asks for more details, turn it into a <strong>list of references</strong>. Your previous clients will remember what got done, but not how.</li>
<li>Keep your estimated number of hours out of the contract. You don’t ever want to find yourself in the position of haggling over a fee simply because you’re <strong>doing your job efficiently</strong>.</li>
</ul>
<p>How do you negotiate a price? &nbsp;Remember that your contract is a negotiating document. If you go in to the negotiations with your minimum number and they counterbid, you’ll feel ripped off. Instead, consultants should<strong>estimate out how long the project will take – and then add 1/3</strong> for all the contingencies that you can’t anticipate. Ask yourself if the number is both legitimate and something you’d be willing to come down from. &nbsp;</p>
<p>One member noted – with nodding agreement from others – is that a peculiar feature of nonprofit consulting is the frequency with which we are approached by potential clients asking for the discounts or pro bono services we offer. When this happens, remind the nonprofit that <strong>consulting is not a hobby</strong> or a philanthropic endeavor, but rather our career.</p>
<p>How do you ensure organizational buy-in? Once consultants enter into an agreement, they approach the project in good faith, believing that the organization’s leadership has agreed on the consultant’s scope of work and will continue to work toward the agreed-upon goals. As a safeguard, Kleiman suggests a few strategies: <strong>asking the Executive Director</strong> <strong><em>and</em></strong> <strong>Board Chair to sign</strong> the contract; expecting partial payment up front; and billing the client monthly (“If they’re paying on a schedule , they’ll work assiduously”).</p>
<p><strong>Managing Expectations</strong></p>
<p>Kleiman noted that a peculiar feature of working with smaller organizations that clients may have an outsized expectation for the results that a consultant can produce. For example, less savvy clients may assume that experienced marketing consultants can get secure a story on the front page of the Tribune. The best way to meet – or pleasantly exceed – client expectations is to manage them from the start.</p>
<p>Remind your client that they are paying you for your best effort, not a specific outcome. Think of it this way: you wouldn’t pay a doctor who promises to cure your disease, or a lawyer that guarantees a win in court. As a consultant, only <strong>guarantee that which over you have complete control</strong> – e.g., number of meetings, a final report or strategic plan. If you encounter clients who say they don’t want to pay you unless you produce desired results, turn and run. They will &nbsp;never be happy.</p>
<p><strong>Failure to Pay</strong></p>
<p>One of the most difficult scenarios faced by an independent consultant is failure to pay. Obviously, your contract is your first line of defense – your agreement should memorialize their promise to pay you for your services. &nbsp;Beyond that, Kleiman notes that her contract includes a 15% late fee. While she often refrains from enforcing the clause for short-term delays, she adds that “the unspoken part is that <strong>I’ll stop working when you need me the most</strong>.”</p>
<p>Remember that failure to pay is a breach of contract – and your response is stop delivering services if they won’t deliver money. For those of us who become very identified with our client and its mission, this can be difficult to enforce. But. Kleiman, notes, “Do whatever you need to do to make peace with your conscience, but don’t be a patsy.”</p>
<p><strong>Who does what? When? (And Don’t Ask How)</strong></p>
<p>During the group discussion, three additional themes repeatedly emerged. First was the notion of scope creep – what do you do when a client “adds 19 other things to the project”? &nbsp;Again – make sure your contract specifically addresses this contingency. Include a clause specifying that the client and/or the consultant has a right to renegotiate. By appending the proposal to the contract – including what each party is accountable for – you have a specific working document to point to. Anything beyond the initial scope can be discussed, agreed upon, and billed separately. Aside from this, consultants simply have to stand firm to their agreement – “If you don’t want mission to creep, just stop working.”</p>
<p>A second raised by fellow consultants was the notion of what to do when the client isn’t holding up their end of the bargain – e.g., not producing the required documentation, responding to e-mails, meeting agreed-upon deadlines for specific work products. Kleiman suggests that if you’re not getting what you need from the client, “send a letter where there’s a pressure point” – let the leadership know that they’re paying you for less than they bargained for. Avoid being penalized for the client’s breach.</p>
<p>And finally – what if a client specifies how a project should be completed (for example, in my line of work – evaluation – clients often begin by saying that they need a survey, without considering what kind of information they want from respondents)? Remember – you as a consultant decide how to get from point x to point y; “If they want to tell you how, tell them you need a 401k and a health plan.”</p>
<p>As consultants, we are obligated to provide the best possible service to our clients – but not to the detriment of own professionalism, reputation – or sanity.</p>https://acn.wildapricot.org/get-support/4455171
https://acn.wildapricot.org/get-support/4455171Sat, 10 Dec 2016 06:01:22 GMT5 Reasons Why an RFI is Better Than an RFP – For Everyone<p><span><em><img src="https://www.acnconsult.org/resources/Pictures/ACN-Massa-photo.jpg" alt="" title="" style="margin: 0px 0px 0px 10px;" border="0" align="right"></em><strong>By: Bonnie Massa,&nbsp;Massa &amp; Company, Inc.</strong></span><br>
Non-profit organizations who are interested in securing a product or service frequently distribute a request for proposal (RFP). In response, potential consultants spend hours of non-billable time putting together a proposal, submitting it, and then sitting back and waiting for a response. Experience has taught me that this is an incredibly counterproductive approach that <strong>wastes the valuable time of organizations and consultants alike</strong>, especially if the work or project an organization purchases is infrequent or never been purchased before.<br>
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An RFP requires potential consultants to provide a description of their deliverables, timelines for completing them, and an estimate of the costs involved. This is akin to doing business at a drive-in window. The organization creates an “order” for exactly what they believe they need, forcing the consultant to take the “order” and create a proposal without knowing the circumstances that led to the need for consultants to be summoned. Fine for burgers but bad for business! An RFP obliges consultants to develop all of these items without affording them the opportunity to get to know the people, problems, and culture that are all part of understanding why the organization is looking for a consultant to begin with. On top of that, a poorly-conceived or poorly-written RFP will inevitably solicit fewer proposals, and/or proposals that are off the mark. In these cases, everyone has wasted their time. Lose – lose!<br>
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RFIs, on the other hand, collect information about the potential consultant’s background, abilities, and experience – in other words, with a <strong>focus on the consultant’s <em>skills</em></strong>! The organization uses this information to decide whether to consider them for an upcoming project. By focusing on the most important element of a consultant-organization relationship – the extent to which they “fit” with one another – an RFI demonstrates the organization’s desire to find the right consultant and the organization’s respect for the consultant’s time and resources by requesting only the basic information needed to move forward with the process. Win – win! Why not use this “free” consulting time to talk to two or three consultants and ask them questions that help the organization sharpen its own knowledge and sense of what is needed?<br>
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Here are five reasons why the RFI is a better tool for the organization and the consultant:<br></p>
<ul>
<li><strong>RFIs incorporate important intangibles.</strong> They allow both sides to meet on paper and in person to discuss the project. Getting to know one another, seeing if their styles fit, and ensuring that the consultant “gets” the organization’s need is more productive than just answering a series of questions. It isn’t always about the lowest bid. Folks who can communicate well and respect one another will get better results!</li>
<li><strong>RFIs encourage the consultant to share their expertise through an open dialogue.</strong> They naturally allow the organization and potential consultant to meet more than once. In general, organizations tell their story more adeptly in person than on paper. And consultants get the chance to ask questions and hear information that leads to a more targeted proposal. The consultant, as the expert on the products and services involved, may have additional ideas on how to approach the project —versus just complying with what’s dictated in an RFP.</li>
<li><strong>RFPs are time-sucks and they cheat both sides. In some cases, consultants practically complete the work in creating the proposal.</strong> In my area —Analytics—the discovery needed to develop an estimate can take a lot of time, and I am not willing to give that away. I am an experienced professional and should be compensated for the initial work necessary to get a project started. In addition, the organization and I learn a lot in the “paid” discovery process about what is needed—and the RFP cheats us out of this.</li>
<li><strong>RFIs demonstrate goodwill from the organization.</strong> When organizations use an RFI, consultants can be assured they are taken seriously because they actually get to meet with the organization. This reduces the chance of the consultant being used as the “third proposal needed” from an RFP—so the organization can hire the firm they already plan to. And even in those situations, the RFI process doesn’t take as much of the supplier’s time as responding to an RFP.</li>
<li><strong>RFIs are faster, cheaper, and better.</strong> Consultants generally can respond more quickly to an RFI, since they can tap existing documents that describe their products, services and clients. They also are happy to meet a potential client. An RFP is a different story. A consultant usually can’t drop everything and devote their time to writing a proposal. If I am given less than two weeks to do one, I don’t bother. A short deadline often is a sign that the organization hasn’t a clue what it takes to respond to an RFP. So how reasonable can I expect them to be about project timelines?</li>
</ul>
<p>What I am describing, without actual examples to protect the guilty, is that RFPs don’t work for most organizations or consultants so let’s use a better tool! If you’re a non-profit leader whose goal is to find a partner who can help you reach your goals, then it’s important to share information and really learn if this is a good fit.<br>
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If you’re a consultant, seriously consider whether it is worth your time to answer some rote questions that may not be on target. Next time you get an RFP – ask for a meeting with the organization. If they are unwilling to meet with you to learn about your expertise and your personal style before committing to a relationship, what have you learned about the organization and what it will be like to work for them?<br>
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Bonnie Massa is President of <a href="http://massainc.com/nonprofit-consulting/" target="_blank">Massa &amp; Company, Inc.</a> and Vice-President of Member Services and Development for Association of Consultants to Nonprofits.<br>
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ACN offers an RFP template on its web site to assist organizations with finding a consultant among its members. If you agree with Bonnie that an RFI is a better tool – let us hear from you below and we will offer an RFI tool on the web site.<br></p>https://acn.wildapricot.org/get-support/4453361
https://acn.wildapricot.org/get-support/4453361